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Dassem Ultor

@dassemultor

Why Confidentiality Is the Next Frontier Zama is bringing Fully Homomorphic Encryption (FHE) into the heart of decentralized finance. This breakthrough lets smart contracts compute on encrypted data, preserving confidentiality without sacrificing composability or compliance. 1. Stablecoins: Privacy Built-In Today’s stablecoins leak details — amounts, sender, recipient — on public chains. Zama’s confidential ERC‑20 tokens use FHE so only participants (or authorized auditors/regulators) can view transaction data. This model resets the balance between transparency and secrecy: * Encrypted onchain values * Identity-hiding yet fully verifiable smart contracts * Programmable access for compliance Think of it as SSL for money, where DeFi meets bank-grade privacy. 2. Private Equity: Tokenization That Respects Secrets Tokenizing private equity only works if it protects confidential data. Investors don’t want valuations, ownership structures, or transactions exposed. With FHE-powered smart contracts: * Capital calls, NAV updates, payouts, and transfers all happen onchain — encrypted * No data leakage, even with onchain execution * Full programmability without compromising confidentiality You get transparency where needed and secrecy where essential. 3. DeFi Lending: Unlocking the Next Trillion Institutions won’t adopt DeFi if every credit line, collateral amount, and loan position is public. Zama’s privacy-centric lending unlocks this capital by enabling: * Encrypted collateral and debt * Onchain, private credit scoring * Uncollateralized and undercollateralized loans via encrypted proofs * Hidden positions that reduce MEV risk Privacy becomes the gateway to institutional liquidity. Zama’s Tech & Momentum Zama’s FHE stack includes an Ethereum-compatible encrypted virtual machine, open-source cryptographic libraries, and machine learning tools that work on encrypted data. They're launching a confidential blockchain protocol and have just raised a major funding round to accelerate adoption.
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